Monster Beverage, the prominent producer of energy drinks, became the latest drinks company to head into the alcoholic segment, definitively agreeing to pay $330 million cash for Canarchy Craft Brewery Collective.
Canarchy, founded in 2015 and headquartered in Longmont, Colo., is a collective of brewers including Cigar City, Oskar Blues and Wasatch, among others. Canarchy sells craft beverages throughout the U.S. and in 20 countries.
Monster Beverage, based in Corona, Calif., has for a number of years considered moving into the alcoholic beverage sector, The Wall Street Journal reported. In 2019, Rodney Sacks, who is chairman and co-CEO, told holders that the company was mulling a move into hard seltzers, malt beverages and spirits, TWSJ reported.
The deal gives Monster "a springboard from which to enter the alcoholic beverage sector," Monster's vice chairman and co-chief executive, Hilton Schlosberg, said in a statement.
"The acquisition will provide us with a fully in-place infrastructure, including people, distribution and licenses, along with alcoholic beverage development expertise and manufacturing capabilities in this industry."
Drinks Majors Pour Into Boozy Beverages
Many sector majors have entered or plan to enter the boozy-beverage fray:
-- Anheuser-Busch InBev moved into hard seltzers via its Bud Light brand, as reported by the Journal.
Monster hopes to close the deal in the calendar first quarter, subject to conditions including regulatory clearances.